US Caprolactam Rebounds 1.98% in Early February After January Weakness

Early February saw a rebound in U.S. Caprolactam values, with prices rising 1.98% in the first week of the month after a weak January performance that left January prices down 1.89% month-on-month. The Caprolactam market narrative through January was dominated by a calm start, an abrupt mid-month slide and a neutral close as buyers and sellers reassessed inventories. Overall conditions have been balanced: steady feedstock availability removed a traditional cost-push while demand pockets provided intermittent support. Our analysts view the early-February uptick as a corrective move rather than a clear reversal of the bearish tone that shaped most of January.

Demand patterns were bifurcated during the month. The automotive sector provided moderate support, where resilient SUV output translated into steady nylon 6 offtake for automotive components. Packaging also contributed modest demand, driven by stronger mailer-film activity and steady resin exports into Latin America. In contrast, flooring and carpet applications were weak as luxury vinyl tile continued to gain share at the expense of nylon 6 carpet. Similarly, fibres and engineering plastics faced headwinds from substitution by polypropylene, polyester and PBT, which curtailed Caprolactam offtake across several end uses. According to ChemAnalyst data, these substitution trends were a material negative for January consumption volumes.

On the supply side, production dynamics eased pressure on the market. Benzene, cyclohexane and ammonia availability were uninterrupted through the mid-January window, allowing U.S. Caprolactam plants to maintain runs and eliminating nearby cost-push support. The combination of ample feedstock and steady operational uptime kept Caprolactam producers from pushing aggressively for higher netbacks, leaving the market susceptible to demand swings rather than supply shocks.

Weekly price behaviour reflected the tension between soft January fundamentals and the early-February corrective rebound. Markets moved largely sideways through early January, followed by a sharp mid-month decline before stabilizing toward month-end. The latest early-February assessment showed a clear increase, driven primarily by BASF’s implementation of immediate Caprolactam price hikes across North America, which reset offer levels and shifted sentiment in the U.S. market. At the same time, a 1% rise in cyclohexanone feedstock costs lifted Caprolactam production expenses, reinforcing the upward adjustment. This pattern indicates that the recent Caprolactam price rise was driven more by supplier-led pricing actions and cost-push pressures than by any broad improvement in demand, with relatively small percentage changes proving sufficient to influence short-term market sentiment.

Looking ahead, the near-term outlook for Caprolactam leans toward modest downward pressure based on current indicators. Our analysts note that the absence of feedstock constraints, persistent substitution headwinds from competing polymers, and smooth logistics are likely to limit upside in the coming week and keep the market balanced. Seasonal factors were not a significant driver in January, and unless demand pockets such as automotive or packaging strengthen materially, price momentum for Caprolactam is likely to remain muted.